TORONTO, Dec. 4, 2013 /CNW/ - ShawCor Ltd (TSX: SCL) announced today an
agreement for the sale, subject to regulatory approval, of its
Socotherm division's joint venture interest in Socotherm Brasil to its
joint venture partner, Tenaris. Socotherm Brasil operates a pipe
coating facility which is managed by Tenaris and which is located at
the Confab welded pipe mill in Pindamonhangaba, Brazil.
From the sale, ShawCor expects to realize net proceeds of approximately
US$30 million, with a further potential earn out based on future
performance. In the fourth quarter of 2013, ShawCor expects to record
an after tax loss of approximately $4 million on the sale.
The sale of Socotherm's joint venture interest in Socotherm Brasil is
consistent with ShawCor's strategy to focus its pipe coating
investments on operations it manages and controls. Following the sale,
ShawCor will continue to serve Tenaris' global pipe coating needs and
the Brazilian pipe coating market from its global pipe coating plant
ShawCor Ltd. is an energy services company specializing in products and
services for the pipeline and pipe services and the petrochemical and
industrial segments of the oil and gas industry. The company operates
through eight divisions with over seventy-five manufacturing and
service facilities located around the world.
This news release contains forward-looking information within the
meaning of applicable securities laws. This forward looking
information is based on assumptions, estimates, and analysis made in
the light of the company's experience and its perception of trends,
current conditions and expected developments, as well as other factors
that are believed by the company to be reasonable and relevant in the
circumstances. Forward looking information involves known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements to be materially different from those
predicted, expressed, or implied by the forward-looking information.
SOURCE: ShawCor Ltd.
For further information:
Chief Executive Officer